A federal appeals court has upheld the denial of partial forgiveness for a $2 million Paycheck Protection Program loan issued to a BMW dealership group, ruling that the business violated borrowing limits by exceeding the cap. The decision comes after the company argued it should receive some relief despite the overage, but the court found no grounds to overturn the initial rejection. Legal experts suggest the case highlights ongoing scrutiny over PPP loan compliance, particularly for larger borrowers. The ruling could set a precedent for similar disputes involving loan caps and forgiveness eligibility.
A federal appeals court rejected BMW of Springfield’s bid for partial forgiveness of a $2 million PPP loan after its dealership group exceeded a borrowing cap.
